The Word ‘Value’ Is Broken And 'Price' Is Paying for It

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Once upon a time I knew what the word “value” meant.

Might feel overdramatic, but this is one of those stories of when you hear something so often (or in so many different ways) that the word becomes mush.

Before running a business, my world was one-dimensional: I was a buyer of value. Groceries, software, index funds. I had a decent grasp on price, trade-offs, and the invisible math that makes a deal feel right.

Then I became a seller of value.

And that changed everything.

Build a pricing business (or let alone any business) and you learn one brutal truth: if your understanding of value is broken, your pricing is, too.

I’m telling you this because later today (May 1) I’m speaking at an all-day virtual summit for agency owners on this very premise.

Consider this your backstage pass.

It’s a compressed version of that talk on the broken assumptions and unconventional ways (rewires) to rebuild it so your prices finally stand tall.

Four Broken Assumptions

Broken Assumption #1 → “Value can be added.”

We believe that we have the power to add value on demand if we do ‘more’ or ‘work’ harder.

Reality: Value is a dependent variable. We can only influence the factors that create it. But you already know this, because you read my stuff.

Broken Assumption 2 → “Value is absolute.”

We believe that if something has tangible or intangible benefits, then it has value.

Reality: Value is comparative and contextual. Buyers benchmark every dollar against its next-best use. A $3,000 upside on a $1,000 fee appears to have value, until the buyer realizes that same $1,000 could net $15,000 elsewhere.

Broken Assumption 3 → “Value is obvious.”

We believe others know what we mean when we use the term.

Reality: Without a modifier “value” the word is vague. It creates misalignment and tension because the word itself has many meanings (with different stakes).

Market value is not the same as face value. Nor is perceived value the same as replacement value. Specificity creates shared meaning, which vagueness invites poor pricing.

Broken Assumption 4 → “Value is a snapshot.”

We default to talking about value as if it were a singular event (feeling).

Reality: Value is a slope. It compounds over time. Our brains fixate on the immediate, so we package what we can see and give the long-tail upside away for free. Focus on the curve, not just the first few dots.

Three Rewires That Improve Price

You can’t fix pricing with spreadsheets alone, and in my line of work, it starts with reshaping how you think about value.

Rewire 1 → Start with the price.

Write down the number you want to charge (not what your current buyer will stomach).

Then ask, “What must be true for this fee to be right?”

• Better outcome?

• Different buyer?

• Stronger perception?

It’s a first principles approach to pricing, where price becomes a business design constraint, not an output.

Rewire 2 → Run discovery like a scientist.

We go into discovery calls with the predetermined notion that our “value” fits somewhere. Instead of proving fit, try to disprove it.

(Context: think back to middle school when we learned about the scientific method - a good experiment aimed to ‘disprove a hypothesis’)

Assume your offer doesn’t fit, then look for the evidence that proves you wrong.

Why it works:

• Kills confirmation bias – you stop hunting only for the yes-signals.

• Surfaces real context – deeper problems appear when you’re not pitching.

• Builds instant trust – prospects don’t feel cornered (or sold to).

No, you’re not sabotaging the sale. You’re stress-testing it with a different frame.

Rewire 3 → Never let value run naked.

Attach a modifier or name the concrete outcome every time the word “value” appears. Or better yet ban the word entirely (i.e., use more concrete terms).

Your outcomes becomes clear, measurable, defensible.

Naked value invites subjectivity; dressed-up value commands firm pricing.

Final Thoughts

Price is downstream from value.

When value is squishy, price wobbles, discounts creep in, and margins leak.

Sharpen your relationships with value and profits widen, growth accelerates, confidence returns.

I promised the summit crowd no hacks, just truths (from observations in the field).

You got them first.

See you next week.

— Peter

P.S. Come join the All In Agency (virtual) Summit. It’s free. Even though it’s marketed to agency owners, the sessions are packed with takeaways for any service business. I’m on at 3 p.m. ET. See you there.